Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT Audit :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
General »
 Alarm bells over return of tax inspector raj
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes

Sebi allows exchanges to offer 5-year
May, 05th 2010

The move will help investors take long-term calls.

Stock market regulator Securities & Exchange Board of India (Sebi) has widened the scope of index-based options by allowing exchanges to offer option contracts based on Sensex and Nifty with a tenure of up to five years. In January, 2008, Sebi had extended the period to three years.

The share of index-based options in the total derivatives volumes has risen from around 10 per cent three years ago to 45 per cent in 2009-10 on the National Stock Exchange (NSE). This year, the share has gone past 50 per cent. Analysts attribute this to volatility and the fact that options are a better tool to hedge risks than futures contracts.

The move will widen the market. However, at the moment, only a few negotiated deals are happening in the long-dated options market. It will be a facility for investors with a long-term view who want to hedge their positions or take a long-term call, said Edelweiss Securities Head (Quantitative Research) Yogesh Radke.

At present, short-end contracts dominate the derivatives markets and account for around 90 per cent trades on NSE. The move may drive over-the-counter (OTC) market volumes back to the exchange, added Radke. Other market players also welcomed the move and said it would bring more transparency.

OTC options contracts are negotiated outside the exchange and are private deals between parties. These will be a boon for institutional investors such as pension funds and insurance companies which have taken bets on the market and want to reduce risk, according to a stock exchange executive. He added liquidity in such products would be enhanced only when such institutions were encouraged to participate in the segment.

Sebi said exchanges could launch such contracts provided there were eight semi-annual contracts maturing in June or December. In addition, three monthly and quarterly contracts that expire in March, June, September or December have to be offered. The exchanges will also have to put in place a risk management framework for these contracts.

The Sebi board had approved the introduction of such contracts on March 6 this year. The decision was taken following a proposal by the derivatives market review committee.

The growth in turnover of long-dated options is greater than that of short-dated options. With the market having gained sufficient experience in longer tenure options, it is recommended that options with tenures of up to five years may be considered for introduction, said the committee report.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions